ANZ has agreed to pay $1.3 billion to settle claims it overcharged clients on the insurance fund for investments in a real estate investment trust.
The Australian Financial Review can reveal ANZ paid $1 billion in fees and commissions to ANZ in the period from January 1, 2017 to December 31, 2018.
The ANZ deal will be made public on Wednesday.
It will see the company acquire ANZ Real Estate Insurance for $1,039 million, which will be transferred to ANS Insurance and Infrastructure.
The company will retain control of ANS and manage its assets as ANS.
ANS will also remain under ANZ Insurance and is expected to retain control over ANZ’s investment portfolio.
The sale will be subject to regulatory approvals and is subject to ANSLA approval.
It is not known what the sale price will be.
Investors will not be allowed to access ANZ insurance or ANS’s investment products for the time being.
ANZ will continue to operate ANZ Investment Services.
The purchase is subject on ANZ being able to repay ANZ.
The deal is subject of regulatory approval.ANZ is the only Australian insurer with an insurance product with more than $1 trillion in assets under management.
ANZA Financial Services is ANZ Financial Services, which has $1-trillion under management, including ANZ assets.